Pepecoin Turmoil: Rogue Team Members, Insider Trading, and Market Plunge
In a whirlwind of events, the Pepecoin (PEPE) community has found itself at the centre of a crypto storm, grappling with challenges that have tested their faith in the project. This article delves into the intricacies of the recent saga, shedding light on the human elements behind these developments and the repercussions for Pepecoin.
The Multisig Mystery Unveiled
On August 24th 2023, the Pepecoin community was rocked by a sudden and sharp drop in PEPE’s price, a nerve-wracking 15% plunge. What triggered this turmoil? It was the withdrawal of an astounding $16 million worth of PEPE tokens from the project’s multisig wallet. Panic spread among community members as they feared the worst – a potential rug pull.
However, amidst the chaos, a ray of clarity emerged the next day on August 25th. An anonymous founding member, sharing the story via Pepecoin’s official account, revealed the truth. It was not a rug pull but the actions of three former team members who decided to seize control of the project’s multisig wallet in an unexpected turn of events. They covertly logged in, bypassing the required approvals, and siphoned off a substantial chunk of PEPE tokens. These ill-intentioned actors then sent these tokens to exchanges for sale, leaving the project in the hands of the solitary remaining member.
Despite this turmoil, the remaining member assured the community that the remaining 10 trillion PEPE tokens were safe and would be carefully transferred to a new wallet for future use or burning. They also acknowledged the internal strife and difficulties posed by specific team members who had hindered the project’s progress.
Market Fallout: PEPE’s Heart-Wrenching Decline
After these revelations, PEPE’s market value took a painful hit. The token’s market capitalisation plummeted by a staggering $100 million, from a promising $444.4 million to disheartening lows of $344.7 million. The sharp drop in price and market capitalisation triggered a wave of panic selling, leading to a 17% drop in PEPE’s value overnight.
The Pepecoin team’s multisig Ethereum address was pivotal in this market turmoil. It successfully transferred PEPE tokens, valued at $16.85 million, to multiple exchanges, including Binance, OKX, KuCoin, and Bybit. To compound the uncertainty, security parameters for the multisig wallet were altered, reducing the required number of signatures for transactions from five out of eight to just two out of eight, causing further unrest within the community.
Insider Trading Allegations and Ongoing Turbulence
As the dust settled, former Pepecoin promoter and crypto influencer Jeremy “Pauly” Cahen dropped a bombshell – allegations of insider trading against the Pepecoin team. He didn’t stop there. Pauly disclosed personal information about several team members and meticulously documented their transaction activities. According to Pauly, the team strategically offloaded PEPE tokens from a centralised exchange (CEX) wallet, establishing a significant short position.
Adding fuel to the fire, on-chain analysts raised concerns, pointing to substantial PEPE transactions involving insiders, with nearly 400 billion PEPE tokens already sold.
A Community’s Resilience Shines Through
In the wake of these tumultuous developments, the Pepecoin community finds itself in a state of flux, navigating through a sea of uncertainty. The token’s price fluctuates, and a sense of unease lingers. However, this resilient community stands strong, united by a shared belief in the potential of Pepecoin.
The crypto world watches closely as the Pepecoin project chats through these challenging waters. The impact of these events serves as a stark reminder of the authentic human dynamics and risks that underlie the cryptocurrency landscape. The hope is for the community to rebuild trust and steer Pepecoin toward calmer waters, leaving this tumultuous chapter behind.
